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The Anatomy of the Global Saving Glut

Author

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  • Bauluz, Luis
  • Novokmet, Filip
  • Schularick, Moritz

Abstract

This paper provides a household-level perspective on the rise of global saving and wealth since the 1980s. We calculate asset-specific saving flows and capital gains across the wealth distribution for the G3 economies – the U.S., Europe, and China. In the past four decades, global saving inequality has risen sharply. The share of household saving flows coming from the richest 10% of household increased by 60% while saving of middle class households has fallen sharply. The most important source for the surge in top-10% saving was the secular rise of global corporate saving whose ultimate owners the rich households are. Housing capital gains have supported wealth growth for middle-class households despite falling saving and rising debt. Without meaningful capital gains in risky assets, the wealth share of the bottom half of the population declined substantially in most G3 economies.

Suggested Citation

  • Bauluz, Luis & Novokmet, Filip & Schularick, Moritz, 2022. "The Anatomy of the Global Saving Glut," CEPR Discussion Papers 17215, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17215
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    1. is not listed on IDEAS
    2. Yasmine van der Straten, 2023. "Flooded House or Underwater Mortgage? The Implications of Climate Change and Adaptation on Housing, Income & Wealth," Tinbergen Institute Discussion Papers 23-014/IV, Tinbergen Institute.
    3. Klump, Rainer, 2022. "Schulden und Staatlichkeit: Überlegungen zur Politischen Ökonomie des Schuldenstaats," IBF Paper Series 06-22, IBF – Institut für Bank- und Finanzgeschichte / Institute for Banking and Financial History, Frankfurt am Main.
    4. Arrigoni, Simone, 2024. "Who gets the flow? Financial globalisation and wealth inequality," Journal of Macroeconomics, Elsevier, vol. 81(C).
    5. Waldenström, Daniel, 2024. "Wealth and history: A reappraisal," Explorations in Economic History, Elsevier, vol. 94(C).
    6. Markus Knell, 2023. "Housing and the secular decline in real interest rates (Markus Knell)," Working Papers 251, Oesterreichische Nationalbank (Austrian Central Bank).
    7. Meyer, Timothy, 2025. "Asset price changes, external wealth and global welfare," Journal of International Economics, Elsevier, vol. 157(C).
    8. Kovács, Olivér, 2024. "A reziliencia metamorfózisa [The metamorphosis of resilience]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 408-443.

    More about this item

    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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